Due to the conflict, Japan will limit the export of certain materials to South Korea used in smartphones and chips.

This may adversely affect the production of South Korean companies Samsung and LG.

The Ministry of Commerce of Japan said it would limit the export of some technical materials to South Korea, including those used in flexible displays such as Samsung, SK Hynix and LG. This is reported by the Nikkei Asian Review.

The Japanese authorities made such a decision after the claims of South Korea to pay compensation for the forced labor of residents during the colonization of the Korean Peninsula by Japan in 1910-1945.

The list of restrictions is to enter into force on July 4th. The measures include the introduction of export licenses for the supply of high-tech materials that South Korean companies use in the production of displays and chips. The share of Japanese suppliers of these materials is estimated at about 90%.

According to Interfax, Japanese exporters will have to apply for a permit for the supply of materials to South Korea. According to media reports, this will slow down the export process by about three months, which South Korean technology companies may suffer from.

At the end of November 2018, the South Korean Supreme Court ordered Mitsubishi to pay damages to South Korean residents for forced labor during World War II. In response, the Japanese government stated that the question of compensation was settled in 1965 as part of a treaty that restored basic diplomatic relations between the two countries.

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